Delaware's residents, particularly those in Kent County, find themselves at the forefront of a significant statewide reassessment of property values. The overarching goal of this reassessment is not to manipulate tax rates but rather to achieve a more equal distribution of the tax burden among property owners. Kent County, having fewer properties to review, stands ahead in this endeavor, nearing completion of the reassessment.
Tyler Technologies, the overseeing entity in Kent County, is actively engaged in the reassessment process, conducting informal hearings until mid-January. During this period, property owners receive "tentative values" for their properties, representing the assessed values within the ongoing reassessment. Residents must engage with this information actively and, if necessary, question the valuations to ensure accuracy.
In instances where property owners find discrepancies in the assessed values, an appraisal becomes a valuable tool. McFarlane's emphasis on accuracy underscores the importance of using an appraisal only when property owners believe the assessment amount is incorrect. In such cases, an appraisal serves as evidence to prove the actual value of homes to the county. As property owners navigate the complex landscape of tax reassessments, staying informed and understanding the role of appraisals becomes crucial. Proactivity in questioning valuations ensures that discrepancies, if any, are addressed, and an appraisal becomes a powerful instrument to demonstrate the accurate value of a property, aligning tax assessments closely with market realities.
here is no doubt that the things that we consume/buy such as gas, food, homes, etc fluctuate constantly. What are the driving forces behind them? How does it all connect with appraising?
It’s all about math and calculations. Every single thing that we purchase has a price that is set by supply and demand, quality, cost to make among other things. And each company has to calculate this information alongside what their hard/soft costs for the company to determine their pricing. This plays exactly into what we need to do as appraisers so that we can afford the costs of the job and still bring back money for our families.
What are hard and soft costs? Hard costs are the things that are always there and never really change (they follow the typical increases but you can plan these out). Think about your office rental, payroll, MLS/AMC Fees and other bills. The soft costs are harder to plan for, they are your gas (to and from the inspection sites), taxes, paper and ink fees, etc. It’s easiest if you go back and look over 3-4 months of costs to get an idea of what your costs are. It can be in depth and take some time but it is honestly worth it, especially if you are new to the business.
It’s also smart to think about the competition. You don’t want to be the lowest quote but you typically don’t want to be the highest either. Most people will look for someone in the middle because the saying “you get what you pay for” is so true! You just don’t want to outbid yourself.
When you add these together you can begin to piece together, which won’t happen overnight, a pricing for your appraisals that will get things paid and also allow you to bring home a check. Obviously, over time you will be able to have more wiggle room in your pricing because you will have the time and work to show that you know your stuff! You may be surprised how much a $10 - $25 increase can help you out in the long run and when you have proven your worth your customers will be willing to pay the money.
Appraising is a business that includes busy times as well as slower times and it’s always a good idea to have a back up list of “to do’s” for the times when there is a lull in the work coming in. Especially when you have employees working underneath you that are there to help out. You are paying them, usually hourly, and you want to get something out of that.
The list doesn’t have to be incredibly specific but should give an outline of the most important things to work on and then it can trickle down to the less important stuff that usually won’t get touched by most, if any of your employees, because every slow down picks back up.
Here are a few things we do around the office when things slow down for us:
Checking the accounting and following up on any overdue payments
Blogs
Updating E&O, coverage, upcoming vacation times and other information with AMC’s
Update email templates
Update social media
Organize folders
Delete/Organize files that are no longer used
Clean office area and desks
Check in with other blogs to see what peers are saying
Anything that can help things move smoother when the appraisals start rolling in and allow your employees to be an asset to the company are always worth adding to the list. What are some of your back up list items?